Grede Foundries files for bankruptcy protection - Triangle Business Journal:

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Wayzata Investment Partners LLCof Wayzata, an SEC-registered investment adviser and managerf of private investment funds with more than $5 billioh in assets, has offered to provide a $45 million temporary loan facility to allow time for an orderl y sale under the supervision of the Bankruptcy Court. Sincd 1992, Wayzata has invested more than $12 billiom in more than 600 investments. The made Tuesday in the U.S. Bankruptcgy Court for the Western Districtyof Wisconsin, was driven by the impact of the currenyt economic downturn on the company and its customers, particularlyh the automotive industry, said Richard Koeningws chairman of the board of directors for Wauwatosa-basex Grede.
The reorganization and asset sale is expectedd to position the compan y for a turnaround as the country emerges from the most difficult economicf period it has seenin generations, he “The significant deterioration in the automotive and construction industriesx and the resulting impact on our company and the foundry industryg in general require that we take this strategi c action,” Koenings said. “We have carefully exploredd many options, and believe a sale to a strong financia backer like Wayzata is the best way to effectivelh proceed in what has been an exceedinglydifficult marketplace.
” Koenings stressed that Grede Foundriese remains in business and that jobs will remaih during the transition. “This move gives us the time to restructure whilr we continue to do business and operatrour plants,” he said. “Grede will continu to buy goods and services fromits vendors, support its work forcw and provide its customers with the same qualitu products and service they’ve come to expectf from us. Our goal is to preservee and strengthen our business so that we can compets successfully inthe future.
” Wayzata has also agreed to make the firs bid, often called a “stalking horse” bid, for “Wayzata’s commitment shows their belied in the strength of the Gredse name and its respected position in the foundruy industry,” Koenings said. Sales of businesses in bankruptcgy proceedings are often structured where one companyh makes the initial bid foranother company’x assets.
Under rules approvex by the court, highe offers from third parties can be submitted as competing The “stalking horse” arrangement helpws ensure that Grede receives the best valus for its assets and allows for offere that are best for the creditorz while preserving the business operations, company managemenrt said. Grede said that it has already received inquiriesa from other parties that are interestedin Grede’s productionj capacity. Koenings said Grede expects the sale and related biddinhg process to move steadilyy through thecourt system.
“We are deeply committed to doing everything necessary to put our company on solicd footing as the nation beginsa to rise out of the worsg economic conditions since theGreag Depression,” he said. “Our customers very clearly want us to succeeds and have beenvery supportive.” Grede announced in May that it had laid off 81 employeews from its foundry in Wauwatosa sincee the end of January. In the company revealed plans to close its foundrytin Greenwood, S.C.